Shopify Capital merchant cash advance for merchants in Canada

In Canada, Shopify Capital offers merchant cash advances. This type of funding involves selling a portion of your future sales, referred to as receivables. If your application for funding is accepted, then Shopify provides you with a lump sum of money for a fixed fee. This lump sum is known as the amount advanced, and the total to remit is the amount advanced and the fixed fee.

In exchange, you’re required to remit a percentage of your daily sales until the total to remit is received. The percentage of your daily sales that you must remit to Shopify is known as the remittance rate, which is based on your risk profile.

For example, Shopify Capital might advance you $5,000 CAD for $5,650 CAD remitted from your store's future sales, with a remittance rate of 10%. The $5,000 CAD amount that you receive is transferred to your business bank account specified in your admin, and Shopify Capital receives 10% of your store's gross daily sales until the full $5,650 CAD total to remit has been remitted. You have the option, at any time, to remit any outstanding balance in a single lump sum.

There is no deadline for remitting the total to Shopify Capital. The daily remittance amount in CAD is determined by your store's daily sales, because the remittance rate is a percentage of your store's daily sales. The remittance amount is automatically debited from your business bank account.

If your remittances are paused or fail, then you may be in default of your merchant cash advance agreement.

Apply for a Shopify Capital merchant cash advance (Canada)

If you're eligible to apply for a merchant cash advance, then you can view your funding options and request a merchant cash advance directly on the Finance page of your Shopify admin. Funding isn't guaranteed, and an offer to apply might expire at any time.

You can choose from three funding options. The terms of each option include the amount advanced, the total to remit which is the amount of future receivables that Shopify Capital will buy, and the remittance rate that is the percentage of your daily sales that will be deducted and remitted to Shopify Capital.

After you apply for a merchant cash advance, your request is reviewed within 1-3 business days, but it might take longer in some cases. If your request is approved, then the amount advanced is transferred to your business bank account.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital.

3. Review the terms of the available funding options, and then click Apply now under the option that you want to apply to.

4. Verify your identity and business details for Shopify Capital.

5. In the Review and accept terms dialog, click Shopify Capital Agreement and the Preauthorized Debit (PAD) Agreement, and then review the terms of the agreement carefully before submitting your application.

6. Select Change my payments provider to Shopify Payments, to change your remittance provider to Shopify Payments.

7. Click Accept terms. You might be asked to verify your details for Shopify Capital, even if you have previously received funding through Shopify Capital.

After you receive the merchant cash advance, the daily remittance based on your store's daily sales begins within two business days.

Updating your bank account for Shopify Payments payouts (Canada)

If you want to change your bank account for Shopify Payments payouts and your remittances after accepting a merchant cash advance, then you need to complete a new pre-authorized debit agreement. You can update your bank account from the Finance page of your Shopify admin.

You must confirm that the country and currency of the updated bank account for Shopify Payments and remittances matches the country and currency of the merchant cash advance before you submit your new pre-authorized debit agreement.

Requesting another Shopify Capital merchant cash advance (Canada)

You may qualify for a second merchant cash advance before you have remitted an existing merchant cash advance in full. If you're eligible for a second merchant cash advance, then new funding options are displayed on the Finance page in your Shopify admin.

Keeping track of your merchant cash advance remittances (Canada)

After you receive your merchant cash advance, you can track the remaining balance of your total to remit from the Finance page of your Shopify admin in the Accounts section.

From the Capital page, you can view the following remittance information:

• the remaining balance or total to remit
• the amount that you've remitted
• the percentage of the total that is remitted
• the transfer history

You can view each day's sales revenue in the Total sales column of the transfer history section. You can view how much is remitted to Shopify Capital in the Amount column.

Download your balance letter

You can download a balance letter from the Finance page of your Shopify admin. You can use the balance letter to show your bank that you no longer have any financial obligation or what your current balance is.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital.

3. Click View all transactions.

4. Click Export, and then click Balance letter.

5. Save the balance letter to your device.

Remit the remaining balance of your merchant cash advance (Canada)

You have the option to remit any amount over $1 CAD against your merchant cash advance, or the full remaining balance in one lump sum. The remittance is debited from the same business bank account that's tied to your Shopify account. Under your agreement, this is a repurchase of your receivables. The purchase price isn't reduced when you remit your entire balance, and remittance doesn't guarantee eligibility for additional financing.

When you make a lump sum remittance, it might take up to three business days to process the lump sum remittance. You'll receive an email confirming that the lump sum remittance has been processed and is now complete. However, your regular remittances will still be processed as usual during this time.

Note

Under your agreement, this is a repurchase of your receivables. Even if you remit your entire balance, the purchase price remains the same. Making a remittance doesn't automatically qualify you for more financing.

Steps:

1. From your Shopify admin, click Finance.

2. In the Accounts section, click Capital.

3. Click Make a payment.

4. Choose the amount that you want to remit:

   • To make a manual remittance, enter the amount in the Custom amount field.
   • To remit the full amount, click Full remaining balance.

5. Click Next step and review the amount to be remitted.

6. If you're sure that you want to continue with the remittance, then check the authorization box and click Make a payment.

Calculating merchant cash advance remittance (Canada)

Every day that you make sales, a fixed percentage known as the remittance rate is applied to the gross amount of your sales to calculate your remittance. On days with higher sales, your remittance will be larger. On days with lower sales, your remittance will be smaller.

Your sales includes all sales that are associated with your Shopify account and the services that are provided under your account. This includes sales on your Shopify online store, at your retail locations, from any sales channels that you have, and through any apps, such as Shopify Marketplace Connect and Shopify Collective.

Daily sales revenue includes all completed orders, regardless of the order source, the payment processing method that was used, or whether the order was later refunded or cancelled. It also includes all charges on orders, such as shipping and handling, as well as any applicable sales taxes, such as duty and value-added taxes.

When calculating remittance, test orders that you place when Shopify Payments is in test mode aren't included in your store's daily sales revenue. If you place an order without test mode activated, then the order is included in your store's sales revenue for the day's remittance calculation.

You'll continue to make these remittances until Shopify Capital has received the full agreed-upon amount of your future sales revenue, known as the total to remit. Each remittance is automatically debited from your bank account and remitted to Shopify in accordance with your Pre-Authorized Debit Agreement. If there are no sales on a particular day, then no remittance will be processed for that day.

Example: 5-day remittance schedule for $15,000 CAD future sales revenue with 10% remittance rate to Shopify Capital

Example of remittances

Day	Daily revenue	Shopify Capital's share	Balance
1	100 CAD	10 CAD	14,990 CAD
2	150 CAD	15 CAD	14,975 CAD
3	125 CAD	12.50 CAD	14,962.50 CAD
4	175 CAD	17.50 CAD	14,945 CAD
5	105 CAD	10.50 CAD	14,934.50 CAD